Costain safeguards workers' pensions
Construction firm Costain has taken a novel approach to safeguarding the retirement plans of its workers after placing a raft of chunky contracts into its pension scheme.
New moves: Other British companies have taken to tackle glaring pension deficits to safeguard pensioners
In a move that will realise a £7.5m net profit, Costain has transferred its stakes in six public private initiative projects into the pension plan, including its work for Kingston Hospital.
The deal has sliced some £22m from the estimated £56m shortfall on the scheme and will also reduce the company's future payments.
It is just the latest in a series of unusual moves that British companies have taken to tackle glaring pension deficits.
Middle England's favourite retailer, John Lewis, has placed its stake in online grocery firm Ocado into its pension scheme, while drinks giant Diageo recently proposed to use whisky to help plug a worrying funding gap.
Costain's pension ploy came to light as the firm unveiled a robust trading update, which sent its shares soaring 24.75p to 226p.
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